Hi SongOfDeath,
Directional Lights will use Cascaded Shadow Maps for their dynamic shadowing. This method, however, has a limitation of distance.
The default for the slider is 20000 units (200 meters), but you can type in higher values. This will spread the number of cascades over those distances, which also means that you will not have higher quality shadows at closer distances.
You can try to use the method used in Epic’s Kite Demo and use a combination of Distance Field shadows with Cascaded Shadows for closer distances since this would provide sharper dynamic shadowing up close.
You can see this implementation with the comparison here: Distance Field Soft Shadows in Unreal Engine | Unreal Engine 5.1 Documentation
I hope this helps.
Tim